Credit Suisse adds ITC in Asia ex-Japan focus; should you buy?

Global financial services firm Credit Suisse added domestic FMCG major ITC to its Asia ex-Japan focus list after the recent clarity on GST.

In the past three trading sessions, the scrip has advanced over 2 per cent to Rs 331.05 on July 5. Meanwhile, it hit a high of Rs 342.30 on July 3, 2017.

Shares of the company got traction after the finance ministry removed additional excise duty on tobacco, pan masala and cigarettes with effect from July 1, following the implementation of the Goods and Services Tax (GST).

The company recently became the fourth firm to cross Rs 4 trillion in terms of market capitalisation.

Domestic brokerage house Sharekhan is bullish on ITC with a target price of Rs 380.

“The risks in the core cigarette business are receding, as the recent abolition of duties will benefit ITC to drive in volume growth in its cigarette business. The non-cigarette FMCG business would see better growth in the coming years, with an expected pick-up in rural demand,” the brokerage house said.

ITC closed at 336.75, up 1.72 per cent.